Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1887-05-27
A DeFuNcT COMPANY.

The Fargo Insurance Fifty-Hye Dol
lars With Which to Pay CLAIMS OF
SI25,0O0.
Sioux Falls Frees: A meeting OF the
creditors of the Fargo insurance COM
dany was held yesterday at the Office of
the company, at which claims amount
ing to nearly $4,000 were represented
Park Davis presided, and o. p. Bates
acted as secretary.
w. l.. Baker, the receiver appointed
February 23d, reported that he had col
lected $50 since taking hold OF the
affairs OF the company, and had expend-
ed S25, leaving 500 as the total visible
assets OF the company.
The claims against the company, con.
sisting OF losses and expenses. aggregate
now about 800 900. and are continually
accommodating from losses and other
sources SO that that they will ultimate
ly amount to at least $125,000.
Where on earth this tremendous liza
bility arose is more than the creditors
can guess. The bookB--that is, such of
them as the receiver has secured-show
that the net loss of the business, with
out the capital, was only $4,000. Now
the capital was $100,e00, and If it had
been paid in then there ought to be $685..
000-enough two psy two-thirds Of all
possible claims. Therefore, the credi-
tors conclude that either the capital wae
never paid in or else somebody has been
making big steal.
The stock book is missing but il Ii
understood that the principal holders
are w. W.Walker of Cedar Rapids, w. A
Lowell, of Chicago. D. l.. Fry OF Fargo
and Col. A. ID. Collier of Sioux Falls. W.
L. Johnson and DIR. e. r. Smith, of Toledo
Iowa, were announced as stockholders,
but they declare that instead of being so
the are creditors of the company--that
they lost $4,000 in money put in, and
SIS 700 in loss OF time and disorganiza.
tion of business. Other books are also
not in the possession of the receiver,
some being at Toledo, some being with
Secretary Lowell in Chicago, and some
with Treasurer Fry in Fargo.
Secretary Lowell makes the statement
that when johnson and Smith were 60
ing into the company they made con-
tract whereby they were to take $50 600
IN Stockton which they were to pay
ssl0, 200 cash and $4,000 in gilt.edged
securities. Also that at that time the
company had $4,000 or $4,000 in the
hands of eastern and southern brokers
doing underground insurance in the
Fargo-who were agents OF the parties
insured and not OF the company, and
who therefore, when trouble came, with
held this money and used it for reinsur-
ing their patrons elsewhere. Lowell
says that If Smith and johnson had put
up there $4,000, the amounts in the
hands OF brokers could have been secur-
ed, and the company tidsd over its dis-
fsulties.
johnson and Smith say that the rea.
son they did not put up, was because
they found the condition of the organi.
cation bad, and did not csre to shoulder
the liability 1nvolYed--that to bridge
oyer what first appeared to be tempor-
ary difficulty they put up considerable
| money, by which they became creditors
of the company, but not stockholders
DR.. Smith stated to the creditors that in
his judgment Secretary Lowell had mis-.
appropriated ct least 100000 of the
funds of the company
Out of ell this muddle, the creditors
at their meeting got but little sRtisfeo.
tion---and ii is doubtful 1T they will ever
get any more. T. b. McMartiD, n. H
Keith and A. B. Kittridge were appointed
q committee to investigate the matters
| in all their BEARINGS, and If possible
suggest methods for disclosing further
assets and instituting q fight for secur.
ing them Tor payment of claims. III the
| capital stock was paid in, they propose
| finding out where it has gone; and il ii
has not been paid in, they will see il
payment can be compeiled, The chances
seem to be, however, that an attempt tt
obtain anything will be merely throw
ling good money after bad.